Consider a copper mine that is expected to produce its first cash flow of $10,000 in exactly
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Question:
Consider a copper mine that is expected to produce its first cash flow of $10,000 in exactly 3 years, after which annual cash flows are expected to grow at a rate of 5%. What price do investors place on the mine today, assuming they require an annual return of 15% on similar investments?
(5 marks)
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